Huda Beauty: Marketing Strategy

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Introduction

The principal target of a marketing strategy depends on the customer’s taste. Indeed, market research has to be carried out, and the findings must be implemented to attract more patrons and maximize profits. Huda Beauty has determined that its most effective strategy of marketing is through the use of social media. This is the fastest way to reach the company’s target, as billions of people in the world use it. Different types of social media platforms can be managed to target ideal customers. By engaging its customers on digital platforms, Huda Beauty has achieved brand equity.

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Brand Overview

Huda Beauty was first founded in Dubai in 2011 and opened a branch in the United States in 2015. The founder, Huda Kattan, is an entrepreneur, a makeup artist, and a blogger. She used her skills to push her brand into becoming one of the most recognized beauty companies in the world. From inception, Huda Beauty offered fake eyelashes, which sold fast, thereby publicizing Huda Beauty and ultimately earning it a top position in the cosmetic industry. Presently, Huda Beauty has a wide range of products, including face palettes, eye shadow, and a collection of foundation. As of 2019, the cosmetic line was estimated to be worth $1.2 billion, with an approximate $550 million net value.

Competition Overview

Huda Beauty has faced massive competition from rival companies including, Fenty Beauty, Elf, Stia, Kylie Cosmetics, Avon, and Loreal. According to Backaler and Shankman (2018, p. 77), “competition is the rivalry between companies selling similar products and services to achieve revenue, profit, and market share growth.” Apart from price wars, Huda Beauty faces product similarity challenges. For instance, “#FauxFilter,” a foundation product from Huda Beauty, has a 30-shades selection, while “Pro Filt’ r” product from Fenty Beauty has a 40-shades collection foundation. Moreover, in 2019 Huda Beauty announced that it would open a new line of beauty products, and Fenty Beauty’s response was to release mini duplications of all its hero items, including mini shimmer compacts, teeny body highlighters, and new Gloss Bomb colors.

Target Market

At the outset, females were the primary target customers; however, recently, Huda Beauty has expanded its target customers to include males. The cosmetic line has exploited the market gap in the courtesy to the changing nature of the world’s culture, whereby both genders embrace makeup. Successful companies have to employ online ambassadors in the brand advertisement if they want the number of their customers to increase all over the world (Backaler and Shankman, 2018, p. 101). The company showcases both men and women models to derive utility from its beauty products, thereby reaching its target customers.

SWOT Analysis

The strengths of the Huda Beauty brand are a robust online presence and catering to all people with different cultural backgrounds. Additionally, its initial location in Dubai, the world’s fastest-growing market, gave it an edge above competitors. Moreover, the company offers its products through online stores such as Sephora Selfridges Harrods worldwide, making its products accessible. Besides being a high-value brand in the cosmetics category in the mind of consumers, the company has its private labels (HB). Huda Beauty has weaknesses, including low brand recall when compared to leading brands like Avon, Fenty Beauty, and Loreal because it lacks proper product promotions in some target countries.

As regards opportunities, Huda Beauty works with remarkable celebrities, world-class makeup artists, renown brands, and significant social influencers like NikkiTutorials. Besides, the beauty line has the opportunity of entering developing countries by customizing products that suit their environments (Backaler and Shankman, 2018, p. 123). Huda Beauty not only faces threats in the form of competitors that sell similar products but also fickle customers who are very selective in the beauty category, so the interest in the brand must be maintained.

Market Research

Huda Beauty Cosmetic Company has invested its resources in gathering information regarding the specific products that the customers need. For instance, the company researched why working-class women do not carry make-up in their handbags. The findings revealed that the target group requires swift make-up application, which they may apply while getting to their work places, but would rather not have the bulky products in their already heavy bags. Additionally, findings showed that the group hardly have time to do make up touch-ups during the day. Even though the company sells various beauty products from eyeshadow, acrylics, to lip liners, it has recently launched a unique product that enables users to apply matte make-up in a short time.

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Product

Users of Easy Bake Powder have reduced the time they take to apply make-up because applying the powder is stress-free, enabling them to save time. The invention has increased the number of Huda Beauty’s customers. Additionally, Huda beauty’s “Easy Bake powder” has an attractive physical appearance that appeals to clients. The product’s wrapper incorporates Huda Kattan’s pictures, which convey the intended message to buyers. As a result, the cosmetic company has expanded its market base to developing countries.

Place

Huda Beauty’s products are currently available in both developed and developing nations. The company has managed to place its products in diverse markets, making it easily accessible as opposed to other international brands. The company’s products are available online on all their platforms, including company website and “Huda Beauty Shop” Instagram page, where customers shop for makeup products which are delivered to their locations.

Price

Huda Beauty has employed several pricing strategies enabling it to profoundly and quickly penetrate the cosmetic industry. The cosmetic line has tapped into the worldwide market primarily through massive sales offers. For instance, when customers order the Easy-Bake Powder, they get a free lip liner or brush.

Promotion

Promotion is a vital part of Huda Beauty’s marketing strategy. The company is using a combination of both push and pull promotional strategies to create awareness on all their products. The company created customer demand for its quick fix make-up through constant and strategic advertising on both digital and traditional media. Currently, the company is pulling customers towards their new products through promotion deals and advertisements.

Segmentation

The market has been segmented using three strategies, namely, demographic, behavior, and psychographic. Under demographic, Huda Beauty has considered age, gender, and income. On the other hand, behavior has focused on people who love heavy make-up and those who prefer light make-up. Additionally, the psychographic segmentation approach divides the target market according to their interests, values, and lifestyle.

Conclusions and Recommendations

Effective marketing strategies help to increase sales by making customers feel like part of the company. Consumers value being informed of new products that might interest them immediately they are produced. The Instagram page of Huda Beauty Company is comparable to a virtual platform where the company updates its customers on all its activities. Brand loyalty also ensures that the already existing customers purchase Huda Beauty products when looking for makeup products.

Reference List

Backaler, J. and Shankman, P. (2018) Digital Influence unleashes the power of influencer marketing to accelerate your global business. Cham: Palgrave Macmillan.

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BusinessEssay. (2022, January 19). Huda Beauty: Marketing Strategy. Retrieved from https://business-essay.com/huda-beauty-marketing-strategy/

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"Huda Beauty: Marketing Strategy." BusinessEssay, 19 Jan. 2022, business-essay.com/huda-beauty-marketing-strategy/.

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BusinessEssay. (2022) 'Huda Beauty: Marketing Strategy'. 19 January.

References

BusinessEssay. 2022. "Huda Beauty: Marketing Strategy." January 19, 2022. https://business-essay.com/huda-beauty-marketing-strategy/.

1. BusinessEssay. "Huda Beauty: Marketing Strategy." January 19, 2022. https://business-essay.com/huda-beauty-marketing-strategy/.


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BusinessEssay. "Huda Beauty: Marketing Strategy." January 19, 2022. https://business-essay.com/huda-beauty-marketing-strategy/.